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antoniya [11.8K]
3 years ago
6

XYZ Company is in the process of issuing bonds. The bonds have a stated interest rate of 4%, which is 2% below the current marke

t rate. What effect will the two interest rates have on the bond issue price?
A. The issue price will be above the bond's face value.
B. The issue price will equal the bond's face value.
C. The issue price will be below the bond's face value.
Business
1 answer:
dem82 [27]3 years ago
6 0

Answer:

C. The issue price will be below the bond's face value

Explanation:

Issuing new bonds with a stated interest rate of 2% below the market rate means that the issuing company will pay investors(bondholders) a coupon amount that is less than what the market is currently offering. Due to this reason, investors will not be willing to pay a higher price to receive lower coupon payments for the life of the bond. Therefore, the issuing price will  be below the bond's face value.

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Ramon has been appointed the manager of a retail store. He wants to bring the store into the modern era and direct its future by
nika2105 [10]

Answer:

C.  install mannequin robots to display clothes

Explanation:

Among the offered answers, a truly avantgarde, modern approach is <u>to implement robot mannequins in the store.</u> With this tactic, customers would be incentivized to approach this innovative customer journey. Through pioneering this technique, Ramon's company would get a competitive advantage through visual merchandising.

6 0
3 years ago
A common stock pays an annual dividend per share of $1.80. The risk-free rate is 5%, and the risk premium for this stock is 4%.
ArbitrLikvidat [17]

Answer:

The value of the stock today is $20

Explanation:

Using the CAPM equation, we first calculate the required rate of retunr on the stock.

The equation for CAPM is,

r = rRF + Beta * rpM

Where,

  • rRF is the risk free rate
  • rpM is the risk premium on market
  • Beta * rpM is the risk premium on stock

r = 0.05 + 0.04

r = 0.09 or 9%

The value of the stock can be calculated using the zero growth model of DDM. The DDM values the stock based on the present value of the expected future dividends from the stock. As the dividend from the stock is expected to remain constant through out to an indefinite period, the value of the stock today is,

P0 = Dividend / r

P0 = 1.8 / 0.09

P0 = $20

3 0
2 years ago
Which type of diversity might be an issue in the situation described in the case
Sonbull [250]

The type of diversity issue that the case described was <u>E. age</u>.

<h3>What is age discrimination?</h3>

Age discrimination is a diversity issue that involves an employer treating its employees with less favor because of their age.

<h3>Answer Options:</h3>

a. r...

b. opinions and values

c. s.... orientation

d. g.....

e. age

Thus, in the lawsuit that Guido and Rankin brought against the Mount Lemmon fire district, the diversity issue was an age issue.

See the attachment for the complete question and answer options.

Learn more about workplace age discrimination here: brainly.com/question/7239617

Download docx
8 0
2 years ago
On june 8, alton co. issued an $90,000, 6%, 120-day note payable to seller co. assuming a 360-day year for your calculations, wh
Firlakuza [10]
Maturity Value = Principal  x ( 1 + Rate x Time )
Here is:
Principal = $90,000
Rate = 6% = .06
Time = 120 / 360
Maturity value = $90,000 x ( 1 + .06 x 120/360 ) =
= $90,000 x ( 1 + .02 ) =
= $90,000 x 1.02 = $91,800
Answer:   c. $91,800
8 0
3 years ago
The key feature of an oligopolistic market is that Select one: a. a single firm chooses a point on the market demand curve. b. e
Lesechka [4]

Answer:

c. a small number of firms are acting strategically.

Explanation:

The Firms in oligopoly can influence market outcome and thus they act strategically to achieve the expected outcome.

6 0
2 years ago
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